Saudi Arabia has awarded a $2.6-billion contract to a Spanish-Egyptian joint venture to build a major 3 gigawatt (GW) combined-cycle gas-fired power plant in the country’s Eastern Province, the Egyptian contractor announced on Monday.
Orascom Construction, an Egypt-based company listed on NASDAQ, revealed that its 50-50 joint venture with the Spanish energy firm Técnicas Reunidas has signed an Engineering, Procurement, and Construction (EPC) contract for the Qurayyah IPP Expansion Project.
The joint venture signed the EPC deal with Hajr Two Electricity Company, a consortium including ACWA Power, Saudi Electricity Company, and Haji Abdullah Alireza & Co. Ltd. Both Orascom Construction and Técnicas Reunidas have already received the Limited Notice to Proceed for the project.
The power plant will be designed with carbon capture readiness and will also include a 380 kV electrical substation.
Osama Bishai, CEO of Orascom Construction, said the contract “builds on our success in the power sector, particularly in Egypt, and we are eager to make a similar impact in Saudi Arabia.”
Saudi Arabia is focused on increasing its electricity generation from natural gas, with production boosted by state oil giant Aramco.
In recent months, several major international energy companies have secured contracts for new power plants in Saudi Arabia. In March, Siemens Energy was awarded a $1.6 billion project, with Harbin Electric International as the EPC contractor, to supply key technologies for the Rumah 2 and Nairyah 2 gas-fired power plants. Located in the western and central regions, these plants will add 3.6 GW of power to the national grid, enough to power approximately 1.5 million homes. The plants are expected to be integrated into the grid in 2027 in simple cycle mode and will transition to full combined-cycle operation by 2028.
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